July 28, 2022
ASGN Inc. reported. (NYSE: ASGN) revenue rose 17.1% year-over-year in the second quarter. The increase includes $36.3 million from businesses acquired in 2021.
Revenue exceeded previous guidance as ASGN’s business continues to build momentum, CEO Ted Hanson said in a statement.
“The continued acceleration of our top line was largely driven by the strength of our commercial segment, which grew 19.4% compared to last year, with 53.9% year-over-year consulting revenue,” Hanson said. “Our government business also remained strong, with federal government segment revenues improving 11.0% year over year, including flat organic growth in a difficult comparable.”
| (US$ million) | Q2 2022 | Q2 2021 | % change |
| Revenue | $1,141.8 | $974.9 | 17.1% |
| Total income | $344.0 | $276.3 | 24.5% |
| Gross margin | 30.1% | 28.3% | |
| net income | $72.5 | $64.2 | 12.9% |
Earlier this month, ASGN completed the acquisition of GlideFast Consulting — a ServiceNow partner and IT consulting, implementation and development company — for $350.0 million in cash.
Separately, the company’s board approved a new two-year, $400 million stock repurchase program.
Revenue by segment
| (US$ million) | Q2 2022 | Q2 2021 | % change |
| Commercial | $850.6 | $712.5 | 19.4% |
| Federal government | $291.2 | $262.4 | 11.0% |
ASGN’s commercial segment includes IT and marketing/creative staffing — the company’s Apex and CyberCoders businesses, among others — while its federal government business provides solutions to the federal government.
Guidance
ASGN forecasts third quarter earnings will rise between 10.2% and 12.0%.
Share and market cap
Shares in ASGN rose 6.09% to $103.07 at 2:25 pm Eastern time, they are 31.71% above their 52-week low, according to FT.com. The company has a market cap of $4.96 billion.
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